Fundtech Acquires InterSoftware Consolidating Bacs Payments Processing Market

7,600 corporate customers set to benefit from additional payments and EIPP services


Fundtech Ltd (NASDAQ: FNDT), a market leader in global transaction banking solutions, today announced the acquisition of InterSoftware (UK) Ltd, through its UK-based division Accountis Europe Ltd. The acquisition expands the company’s UK corporate payments customer base to 8,500, representing over one-third of all companies processing Bacs payments. These new customers will benefit from having seamless access to Accountis’ extensive range of electronic payment services, including electronic invoice presentment.

Following the acquisition, InterSofware Bacstel-IP users will have access to a wider range of products and services in areas such as direct debit and credit management, remittance notification, fully automated enterprise payment workflow and electronic invoicing presentment and payment (EIPP). Customers will be able to add features and streamline payment operations, while reducing costs. InterSoftware users that migrate to the Accountis Web-based ASP service will be able to add any of these modules instantly without any change to their IT infrastructure.

Peter Radcliffe, Executive Chairman of Accountis said: “This acquisition firmly positions Accountis as the leading player in the UK payments market. With access to 7,600 new corporate customers, we have an unique opportunity to accelerate the growth of Accountis’ wide range of payment services, including our EIPP Network.”

Commenting on the acquisition, Reuven BenMenachem, CEO of Fundtech said: “This acquisition significantly expands our corporate customer base, enabling us to provide a wide range of leading-edge payment services directly to corporates and via our existing banking channels. This move supports our long-term goal of being the premier provider for corporate FSC services to corporations and financial institutions globally.”

For the year ended December 31, 2008, InterSoftware had revenues of GBP 1.1 Million. Under the terms of the definitive agreement, Accountis acquired 100% of InterSoftware for GBP 2.7 Million in cash. The transaction closed on April 1, 2009 and is expected that over the next few months InterSoftware will be fully integrated into Accountis. For the second quarter of 2009 Fundtech expects the acquisition to be neutral in terms of Non GAAP earnings per share, and slightly dilutive in terms of GAAP earnings per share. For 2010 Fundtech expects the acquisition to be slightly accretive in terms of Non-GAAP EPS neutral in terms of GAAP EPS.

- Ends -